Queensland’s first train line was built from Grandchester to Ipswich in 1865, kickstarting the Ipswich railway workshops that employed thousands of people until they closed last decade.

Cr Antoniolli said the Defence contract announced on Wednesday would create more than 330 permanent jobs from the outset, build significant opportunities for local businesses and provide associated work with ongoing delivery and maintenance of the vehicles.

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“This is huge for Ipswich, make no mistake,” he said.

“This means jobs for the next 30 to 40 years, for the life of the contract.

“I believe this is the best thing that has happened to Ipswich since Queensland Rail built the first railway line and railway workshops in Ipswich in 1865.”

Prime Minister Malcolm Turnbull was at Brisbane’s Enoggera Barracks on Wednesday, where he made the announcement that Rheinmetall’s Boxer armoured vehicle had won the $5 billion contract for 211 new vehicles for the Australian Army.

Rheinmetall is building 1200 vehicles for the Australian Army at Wacol and promised in July 2017 it would create a Military Vehicle Centre of Excellence at Redbank if it won the $5 billion contract to build the eight-wheel drive, highly sophisticated threat and rescue armoured Boxer CRVs.

Ipswich is already home to RAAF Base Amberley, Australia’s largest air base, and one Wacol industry, Volvo, produced 3000 trucks to a range of clients including the army in 2017.

Cr Antoniolli said defence-related industries contributed “to more than 7000 jobs” and generated almost $800 million to the Ipswich economy in 2016-17.

“Defence is a key industry for the City of Ipswich,” he said.

Mr Turnbull had to ward off protests from Victoria that the decision to award the contract to Rheinmetall was a move to win marginal seats in Queensland at the next federal election, adding the benefits of the project would be spread across the country.

Mr Turnbull said Rheinmetall had designed a superior tank. "This is about lethality and survivability. This is about capability and protection."

Mr Dick told ABC Radio the decision was "a new beginning for manufacturing in Queensland" and that the state government had worked with Rheinmetall for three years to secure the contract.

Manufacturing unions on Tuesday afternoon welcomed the decision saying it would create long-term jobs in Queensland.

The Australian Manufacturing Workers’ Union (AMWU) spokesman Rohan Webb said the decision was a good one for Ipswich and would create spin-offs for Queensland.

The delivery of this project will help the Ipswich community to stay viable, because when regional communities have good, secure jobs, there is a positive flow on affect for local businesses and families.”

"This decision is great," Mr Webb said.

"But the hard work is not over. The AMWU will be lobbying hard to ensure the supply chain benefits of this project stay in Queensland to benefit workers across the state, not just in the south-east corner."

The Queensland Resources Council chief executive Ian Macfarlane said the big defence contract was an excellent support for Australia's steel and coal industry.

Last year, Rheinmetall announced a partnership with Australian steelmaker Bisalloy Steel, he said.

"This is great news for Australian steel and coking coal needed to manufacture the steel armour for the Boxer CRV vehicles," Mr Macfarlane said.

"For the Queensland resources sector, the Land 400 contract again highlights our role in advanced manufacturing.